560,000 former Corinthian College students had their student debt canceled by the Education Department.
Corinthian was shut down due to accusations of predatory behavior.
This is the latest action taken by Biden.
The Department of Education announced on Wednesday that all remaining student-loan borrowers who attended Corinthian Colleges will have their debt wiped out.
The $5.8 billion was approved for a group student-loan forgiveness claim.
Corinthian was shut down in 2015 after a number of investigations found that the school engaged in predatory behavior that pushed students to take out loans when it was not the best option for them. The department has approved a type of loan relief for borrowers who were defrauded by for-profit schools.
The biggest group approval the department has acted on to date will include borrowers who did not submit relief claims themselves.
The Secretary of Education said that every student deceived, defrauded, and driven into debt by Corinthian Colleges can rest assured that the Biden-Harris Administration has their back and will discharge their federal student loans.
The press release states that borrowers will not have to take any action on their own, as the Education Department will begin notifying impacted students of this relief.
Cardona has approved more than $2 billion in borrower defense claims for former for-profit students. Many borrowers are waiting for relief because of those actions.
Insider reported in March that 16 Democratic lawmakers, including Massachusetts Sen. Elizabeth Warren, urged Cardona to act on the remaining claims for Corinthian students.
For the estimated 350,000 students who were cheated by Corinthian, the wait for debt cancellation has spanned three presidential administrations.
Since Corinthian shut down, former students have been fighting for their own relief. A group of borrowers known as the Corinthian 15 met with the Debt Collective and prepared for a debt strike that has now turned into 200 students and counting.
Nathan Hornes, one of the original 15 strikers, said during a Wednesday press call that this has been a long time coming. This does not stop here. The buck doesn't stop with us.
Vice President Harris took action against Corinthian when she was attorney general of California. She secured a $1.1 billion judgment against Corinthian in 2016 and provided compensation to students who were cheated.
Along with student-loan relief, some of Biden's top officials have vowed to ensure for-profit schools are held accountable for bad behavior. At the end of last year, Federal Student Aid head Richard Cordray said that more needs to be done to prevent people from abusing these student aid programs.
As Biden works toward making a decision on broad student-loan forgiveness for federal borrowers, Wednesday's widespread relief comes as well. Recent reports suggest that Biden is looking at forgiveness of up to $10,000 for borrowers making under $150,000 a year.
The original article is on Business Insider.
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